Shane Nelson
Shane Nelson

InsightHotel occupancy across the state of Hawaii was 69% during the first six months of 2010, climbing 4.8% from the same period last year, according to an industry survey conducted by Hospitality Advisors and Smith Travel Research.

Average daily room rates, however, sunk 5.2%, to $171.78, during the first half of the year. Higher occupancy did appear to offset Hawaii's widespread rate discounting, though. The state's annual room revenue totaled $1.21 billion through June, up 3.1% year over year.

"The market improvement during the first half of 2010 is certainly welcomed news, and summer bookings for Oahu and Maui are strong," Joseph Toy, president and CEO of Hospitality Advisors LLC, said in a statement released with the survey data. "However, given the depth of the market losses in 2009, we are still far below our market peaks of three years ago."

Year to date through June, occupancy was 75% on Oahu, increasing 5% from the same period in 2009. Average daily rates there dropped 4.2%, but revenue per available room was up 2.6%, to $108.45.

Although ADR on Maui plunged 9.1%, to $224.61, RevPAR on the Valley Isle was the state's highest at $153.32 -- up 3.2% year over year -- thanks to an 8.2% jump in occupancy to the islandwide average of 68.3%.

Kauai and the Big Island saw slight year-over-year occupancy increases, finishing the first six months of 2010 at 60% and 55.4%, respectively. ADR on the Big Island was off just under $4, at $187.17 a night, while RevPAR there was $101.53, essentially unchanged from 2009.

ADR on Kauai was off nearly $10 from the same period last year, at $182.80 a night. RevPAR on the Garden Isle was $109.68 year to date through June, down nearly $3 from last year.

Asked when room rates might really begin to climb again, Toy said that he thought significant increases were still a ways off.

"We probably won't see any major push in room rates until midyear 2011, but that's just kind of a recovering of sorts," Toy said. "I don't expect Hawaii's rates to be back where they were [before the economic downturn] until perhaps 2012 or possibly '13 or '14. It's going to be about a two- to three-year process to get our rates back up to where they were, but until then, that's great for the consumer."

According to the Hospitality Advisors and Smith Travel Research data, Hawaii was third only to New York and Miami nationwide in terms of RevPAR during the first six months of 2010. Hawaii finished the first half of the year at $108.45, while New York and Miami averaged $165.56 and $117.33, respectively.

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